Whistleblowers Perform a Social Good

Whistleblowers Perform a Social Good

In recent years, whistleblower litigation has increased significantly. A wide range of new legislation includes whistleblowing provisions such as the Dodd-Frank Wall Street reform bill, False Claims Act for federal financial fraud, and Virginia’s new whistleblower law (HB 798) on employer retaliation. Contrary to the assertion of many in the business lobby, whistleblowers perform an essential social good that creates better outcomes for employees, consumers, and business.

Perhaps most obviously, whistleblowers are good for employees. An employee who is able to “blow the whistle” on a culture of sexual harassment or racism creates a better place to work and not just for the employee but for everyone working at the business.

Whistleblowers are good for consumers. Whistleblowers detect more corporate fraud than any other source, including management review, internal audit, or law enforcement.[1] Every year fraud costs taxpayers billions of dollars.[2] Whistleblowers have brought to light some of the biggest frauds in American history. For example, whistleblowers revealed the almost impossibly corrupt business practices of Theranos and (insert deep voice here) “Elizabeth Holmes.”[3]

Whistleblowers are good for business. A recent study in the Harvard Business Review demonstrates whistleblowers create fewer lawsuits and lead to settlements for smaller dollar amounts than instances where whistleblowers are not encouraged to come forward.[4] The research demonstrates whistleblowers provide an avenue for companies to address problems before they mushroom out of control.

Whistleblowers are a win-win. Rather than demean whistleblowers, we should all applaud the beneficial service they provide.

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The attorneys at Frith Ellerman & Davis have extensive state and federal trial experience representing individuals across Virginia who have been seriously injured or in business litigation disputes. A small firm by choice, we feel honored to help individuals with their legal needs.